Accounting entries behind good issue

[Former Member]

Hi,

I am quite new to SD and i have some questions that I hoped you will certainly answer.

1. In terms of accounting what entries does good issue generate?

2. How do you configure the accounts to be posted for good issue?

3. In case there is no inventory management set up for a company is it useful to set up outbound delivery and good issue in its sales and distribution process.

4. Is it possible to have the client account debited and a provision account credited during goods issue and when invoicing have the provision account debited and sales a/c credited. If yes how do you set up the customising for goods issue.

Thank you in advance for your answers.

[Former Member · Accepted solution]

for 1/ Cost of Goods is accounted during PGI

for 2/ THe movement type will be assigned with relevant G/L Account. Check in OMJJ the movemnet type configuration and OBYC for accounting per Chart of accounts.

for 3 / Each movemnet type has two parameters. Quantity Updating / value updating. So you can choose which suits your needs

for 4/ am not sure what is the purpose of this...so cannot suggest.

Hope this information helps

Regards

Sai

[Former Member · Accepted solution]

Hi

When you do PGI the floowing are the accounting entries:

Cost of goods slod A/c Dr

To Inventory Dec A/c Cr.

floowing entries will be determined:

1. MM and FI integration :

you can do the automatci accounting entries determination T. Code : OBYC

BSX----INVENTORY POSTINGS

GBB---OFFSETTING ENTRY FOR INVENTORY POSTINGS

Based valutation area gl accounts are maintained.

IN GBB, THE GENERAL MODIFIERS---

THE GENERAL MODIFIERS- VAX--

---

DELIVERY

Based on the above entries the accounting entreis will be determined automatically

Thanks

Vasu

[Former Member]

Thank you all for your answers.

My requirement is that my client does not emit an invoice on the date the good is issued but at the end of each month by sending a consolidated invoice.

So in terms of accounting my client wants that during goods issue

Dr - Clearing a/c of client that need to be invoiced

Cr - Sales a/c

During invoice

Dr - Client a/c

Cr - Clearing a/c for client.

Does this implementation seem realizable in SAP? During goods issue is it possible to determine the Sales a/c in the same way as how it can be done during invoicing. Thank you again for your help

[jignesh_mehta3]

Hello,

Please note the following answers to your questions:

1. Cost of Goods Sold A/c Dr. (Will reflect in P & L A/c Debit side)

To Stock A/c Cr. (Will reflect on Assets side of balance sheet)

2. Also suggested by Sai & Vasu above.

3. If there is no Inventory Management in your company, then why do you want to create Delivery & PGI in Sales & Distribution. I have worked for a Project Based Company & we used to create Invoice directly from Sales Order. We had made settings in MM module such that while doing MIGO we would directly issue the goods to Projects. Or if there was stock in hand, that can be issued to Projects by hitting Consumption account.

To sum it up, you dont need Delivery & PGI in Companies where there is no Inventory Management involved.

4. In your suggestion, how would you hit the Cost of Goods Sold Account which is most important in Net profit calculations? Also it is against SAP standard functionality. Let the Customer Account hit only when Invoice is created. What is the business need to hit Customer Account while doing PGI?

Hope this helps..

Thanks,

Jignesh Mehta

[Former Member]

Hi,

for 1st:

Cost of goods sold Debit u2013 GBB-VAX

Inventory of Finished goods(Stock A/c) Credit- BSX

for 2nd:

OMWN- Transacton key/account modification with Mov Type. u2013 STD HARD CODED

OBYC- Transction key per Chart of accounts with Valuation grping code(from OMWD)/general mod(from OMWN)/valuation class(from MMR) / G/L account

for 3rd:

Each movemnet type has two parameters. Quantity Updating / value updating. So you can choose which suits your needs

for4th:

I am not sure whether we can do it or not...

I am not clear on it, so i cannot suggest.

Better to search in SDN, any one of our friends in the forum will help you.

with regards